The Korea Asset Management Corporation (KAMCO) has written off 3.1 trillion won ($2.2 billion) in long-overdue loans that had been in arrears for more than 20 years.
The state-run agency said on the 31st that the move was intended to help vulnerable borrowers struggling with long-standing debt rebuild their finances, in line with the government’s push for inclusive finance.
The special write-off was carried out to clear long-overdue claims that are not subject to sale to the new debt relief fund. In a first round of special write-offs last December, KAMCO cleared claims that had been in arrears for more than 20 years with no repayment record for at least seven years. This second round applied looser income screening criteria, widening the…